Silver, 6th Consecutive Year of Supply Shortage...$60 Defended by EV and Solar Demand

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As silver prices maintain around $60 per ounce, a six-year consecutive supply shortage and demand from solar and electric vehicles are supporting the long-term bullish argument. With the projected supply deficit for this year alone reaching 46 million ounces, silver consumption in eco-friendly industries has emerged as a key variable determining price direction.

According to FXLeaders on July 7 (local time), silver prices are moving around $60 per ounce. While a strong dollar and easing geopolitical tensions act as short-term burdens, demand from the solar and electric vehicle industries is supporting the price.

The silver market is expected to record a sixth consecutive year of supply deficit in 2026. The Silver Institute projected this year's supply deficit at 46 million ounces. As most silver is produced as a byproduct during non-ferrous metal mining, it is difficult to rapidly increase mine supply solely through price increases.

Industrial demand accounts for more than half of total silver consumption. Solar power generation accounts for approximately 20% of global silver consumption, and demand continues to grow in electric vehicles and technology sectors. With the added influence of China, the world's largest silver consumer, global inventories are tight.

The short-term market is being influenced by the provisional nuclear agreement between the U.S. and Iran and Federal Reserve policy. Easing geopolitical tensions have reduced demand for silver as a safe-haven asset, while consumer prices, which have remained around 3.8% in recent months, and high real interest rates have supported a strong dollar. Conversely, weaker-than-expected labor market indicators are maintaining expectations for future monetary policy easing.

On the 4-hour chart, silver broke out of a long-term downtrend channel and recorded $60.05. If it recovers and holds $61.55, targets above $62.72 have been suggested, and $67, where the 200-day exponential moving average is located, was identified as a strong resistance level. If the support level is breached, $59.06 and $57.51 were presented as downside targets, and the Relative Strength Index (RSI) at 59 showed no clear direction.

[Article Summary]

-The silver market is expected to face a supply deficit for the sixth consecutive year in 2026, with the deficit projected at 46 million ounces.

-Industrial demand accounts for more than half of total silver consumption, and solar power generation makes up about 20% of global consumption.

-The key for silver prices is whether they recover $61.55, with targets above $62.72 suggested after a breakthrough.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*